Depreciation calculation in case of succession

u shall file two ITRs for both deceased & successor..for deceased u shall fill in pening balance & additions for more than 180 days but in case of successor u shall not fill anythng under opening, u will only put in details in period less than 180 days. Sale whole assets under deceased

Dear Kunal sir,

but in the sec. 32 it is prescribed that the total dep. must not exceed the amount of dep. that you were otherwise allowed to claim... but i think in the case you just mentioned, A will get 100% dep. on that asset and then, B will also get 50% dep. (being less than 180 days).... is it right in the view of section??? i don't think so...

Hey u guys didnt understand..Deceased will sale it to successor..suppose an asset wid WDV 100 is sold fr 100 den asset value is zero, now u will sale it after 180 days are over (put sale value in that column of the schedule in ITR), so successor wil get adequate dep & similarily, successor will add after 180 days & get balance depreciation

ya sort of, as der is no other option available under the ITR

Dear Kunal sirji,

in that case, the problem is same as we had 2-3 hours ago... that is A & B both are charging depreciation of Rs. 21 (combined) on the asset on which you are entitled to clam only 15% depreciation... sirji, try to understand.. this is not the solution... sorry, if you take it otherwise...

and anuj sir, i am trying to get the answer... but as you also know, it's the busy time... so, there might be little delay in solution... but trying my best... 

thanks in advance... and sorry kunal sirji again.. but this will not work here.. sorry... as said by mr. anuj sir, that A will get 15 Rs. Dep. and B will get Rs. 6 as Dep. which is not right.. combining both, the dep. must not exceed Rs. 15.

Dear Anuj sir and kunal sir,

first of all sorry.... there was some mis-understanding on my part yesterday.. i was thinking/applying all provisions of sec. 170... thinking that the query is in regards to "succession in case other than death"... which was not right... as u asked query pertaining to death of predecessor... sorry again..

and as said by mr. kunal in his first comment (though he also mis-understood later on)... that the dep. is charged by predecessor/deceased for the whole year and then, his successor will claim dep. for the remain. part of the year... was right... in other words, combining both the dep. claimants, the depreciation amount will be 100% dep. (in aggregate) because u/s 32 it was prescribed for sec. 170 only that it will be allocated on the basis of no. of days between both... but this is not the case of sec. 170...
now, i also think that Mr. A will transfer/sale the asset... and no need to show it as gift.. as it is succession and its transfer by will... so, exempt u/s 47... by the amount of any capital gains arises... and Mr. B will show the amount of asset acquired as that of the previous owner u/s 49(1)... e.g. Mr. A acquired it on Rs. 50000... and t/f on will... thus, Mr. B will also show it at Rs. 50000 (irrespective of the FMV/the amount of will etc...)

Thus, dep. for Mr. A would be Nil.. as he has entered the sale amount (acc. to will) in the column "consideration or other realization during the p.y. out of 3 or 4".... and Mr. B will claim Dep. accordingly, i.e. 50% or 100% depending upon the date of will/transfer of the asset legally...

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

Dear Anuj sir,

you are required to enter sale amount at column 5.... not at 8... as it says "consideration or other realizations during the year OUT OF 3 or 4"... and as it is OUT of previous year's asset/opening balance.. thus, enter amount there.. 

Thanks a lot Lovely ji...now i got your point...thanks a lot.

so you mean 

if WDV as on 01/04/2012 is Rs. 100

then dep @ 15 % will be Rs. 7.5/- . Asset sold for Rs. 100/- .

so in P  & L...  Depreciation will be Rs. 7.5/- and exempt capital gain u/s 47 also will be Rs. 7.5/- and asset sold will be routed through  capital a/c..

Thanks a lot....